Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the First Trust Consumer Staples AlphaDEX ETF (FXG), a passively managed exchange traded fund launched on 05/08/2007.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $296.48 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. FXG seeks to match the performance of the StrataQuant Consumer Staples Index before fees and expenses.
The StrataQuant Consumer Staples Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.62%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 2.24%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 86.60% of the portfolio, followed by Healthcare.
Looking at individual holdings, Casey's General Stores, Inc. (CASY) accounts for about 4.90% of total assets, followed by Mckesson Corporation (MCK) and Cencora Inc. (COR).
The top 10 holdings account for about 41.20% of total assets under management.
Performance and Risk
The ETF has added roughly 1.03% and it's up approximately 1.92% so far this year and in the past one year (as of 07/08/2025), respectively. FXG has traded between $61.21 and $70.06 during this last 52-week period.
The ETF has a beta of 0.57 and standard deviation of 12.84% for the trailing three-year period, making it a medium risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Consumer Staples AlphaDEX ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. FXG, then, is not a great choice for investors seeking exposure to the Consumer Staples ETFs segment of the market. Instead, there are better ETFs in the space to consider.
Vanguard Consumer Staples ETF (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $7.68 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.07 billion. VDC has an expense ratio of 0.09% and XLP charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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First Trust Consumer Staples AlphaDEX ETF (FXG): ETF Research Reports McKesson Corporation (MCK): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Casey's General Stores, Inc. (CASY): Free Stock Analysis Report Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports Vanguard Consumer Staples ETF (VDC): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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